General Terms of Delivery                                                               

of Letex GmbH, Augsburg

 2005

1. Application Excluding any application of he General Terms of Business of our suppliers and customers« are provided that no differing written agreements have been made, these Terms apply to all the deliveries and purchases which we make. In supplementation, the legal regulations appropriate in any particular case apply and, in cross-frontier trade, the most recent Version of the INCOTERMS of the International Chamber of Commerce.

2. Payment within 30 days without deduction or within 14 days with 2% discount. In case we accept bills of exchange, discount and bank charges have to be paid by the buyer. We do not guarantee for presentation and entering a protest in due time. It is not allowed to set off claims against our Claims and to lay a lien on them. If there arise doubts concerning the solvency of the buyer or in case the time of payment has passed, we are entitled to demand prepayments and to revoke granted dates of payment. In case of exceeding the date of payment. we are moreover justified in charging interests amounting to the customary bank debit interest rate, at least, however, 3% over the respective bank rate of the Deutsche Bundesbank of the amount of invoice.

3. Delivery is made for account and risk of the buyer, not insured from the place of delivery or by placing at disposal on stock, regardless of the fact who will bear he transport costs. Embarrassments in delivery occurring at the seller or to his supplier, be it by an Act of God, official rneasures, interruption of work, stoppage of raw material or by other reasons for which the seller may not be hold responsible, authorize the seller to claim for an adequate time to deliver subsequently corresponding at least to the duration of the embarrassment of delivery, but amounting to a maximum of 8 weeks. Both the seller and buyer, after this date, are entitled to withdraw from the contract. Claims by the buyer for compensation delivery or damages due to non compliance or due to non-opportune compliance, in those cases, are excluded.

4. Reservation of Title. The vendor reserves the title to the supplied goods to secure all the Claims held against the purchaser by said vendor as a result of their business relations. The vendor's title covers new products created by processing the goods subject to reservation of title. Such processing Is performed for the vendor in his capacity as the manufacturer. In the event of processing, combining or mixing with items not owned by the vendor, said vendor acquires a joint title corresponding to the proportion of the invoice value of his reservation-of-Title goods to the invoice values of the other materials. To secure Claims pursuant to para.1, the purchaser now already assigns to the vendor all receivables resulting from the sale of the goods subject to reservation of title, including bills of exchange and cheques. In the event of sales of goods in which the vendor holds a joint title, assignment is restricted to the part of the receivables corresponding to said vendor's share of the title. In the event of processing under a contract for work, the amount of the work-compensation receivables corresponding to the proportion of the vendor's invoice for the processed reservation-of-title goods is now already assigned to said vendor. For as long as the purchaser is willing and able to duly meet his obligations to the vendor, he has the right to dispose, in the course of normal business, of the goods subject to reservation of title or joint title by the vendor, and to himself collect the receivables assigned o him. Transfer of ownership for security purposes, pledging and assignment of receivables, including by way of sale of accounts receivable, is only to be made by the purchaser subject to the vendor's prior written consent. The redemption of goods subject to reservation of title only constitutes contract rescission if the vendor makes an express written Statement to this effect. If the value of securities exceeds the receivables being secured by more than 10%, the vendor shall release securities at his own discretion at the purchaser's request. If reservation of title is not permissible or only permissible to a limited extent under legal regulations applying in the purchaser's country, the above rights of the vendor shall be restricted to the extent legally permissible.

5. Disapproval or any other complaints do not entitle the buyer to Claim for damages or to hold back payment. The buyer can only place the delivered goods at disposal, but not claim for compensation delivery. We have the right to deliver replacement within the agreed delivery time plus an adequate time for subsequent delivery in case the delivery is imperfect or incorrect. The buyer - if necessary by a trial - has to examine whether the goods delivered are perfect and appropriate for the provided use. If he falls to inspect or try the goods, we cannot be hold responsible. Minor differences in quality or final aspect of the yarns or ply yarn cannot be avoided technically and are considered usually in trade not as defect. When formulating a disapproval, the buyer is obliged to give the seller the opportunity of proving the justification of the complaint. Defective material may only be given back if the seller has agreed to. If the disapproval is justified, the buyer may ask for a reduction within the scope of these terms in case the seller is not prepared to make a compensation delivery within a reasonable period. An exchange of goods may only be requested if the delivered goods are entirely useless. Any further Claims are excluded.

6. Place of performance and competency of court for all Claims derived from the contract and from a possibly resulting protest of a bill of exchange Is the Amtsgericht (county court) or Landgericht (provincial court) competent at the location where the seller has its domicile.

7. Final terms. For the rest, those terms, usual in trade, are valid vis-à-vis the buyer which are agreed between the seller and its supplier. This applies also to all terms concerning the technical fundamental principles such as tolerances in quality, colour and yarn count. Alterations of sales contracts are only binding if they are confirmed in writing by the seller. In case there is not made a written protest against these terms within a period of 3 days from the receipt of these conditions, silence is considered as agreement.

If individual regulations for legal reasons should be ineffective or become, then thereby the validity of the remaining regulations our sales and of terms of delivery is not affected.